PayPal’s decision to offer cryptocurrency options in its payment ecosystem is a significant milestone that might increase the penetration of digital assets in many industries. Tesla’s attempt to be the first to allow crypto payments for new EVs was also an impressive advert for digital assets. The sports industry has seen a crypto buzz also; many sports clubs globally are coming to terms with cryptocurrencies’ massive potential.
Cryptocurrencies and NFTs have diverse classes that suit virtually any type of sport. A significant mention is the online sports games that have integrated NFT purchases with cryptocurrencies, gamers now have their favorite avatar players by staking some token. Trading platforms are also fighting to enter the lucrative crypto sports market by offering mouthwatering sponsorship deals, which not only work for them–with adverts–but for the clubs in terms of growth.
However, while the gaming world gradually grows towards cryptocurrencies and NFTs as the fuel, real-world sports are looking to have a taste of the pie—currently large enough for every industry that wants a piece. Various moves lately by crypto companies in elite sports have confirmed this.
Fan Tokens (FTs): Why Do They Matter In Sports?
Fans are the pillars that hold sports clubs, especially during the early stages where sponsorship is scarce. However, with the increasing interest from big companies for sponsorship deals, fans have become alien to the clubs they helped bring to life. Fan Tokens are the new avenue for integrating fan ideas into the sport to make them more involved while taking advantage of the lucrative sponsorship deals crypto companies offer.
Crypto companies’ spending on ad displays has limited the power of fans in club operations. For example, in the NBA, sponsored revenue hit a staggering $1380 million in 19/20 before COVID hit. Ticket collection, in the same period, only managed about $1.5 billion in revenues for the NBA, which represents 19% of all revenue collected. The stats show that clubs can run on empty stadiums without a significant hit on money collected at the gates.
FTs solve this issue by allowing super fans to have a significant say on club operations. In addition to that, FTs create new revenue fronts to help smaller teams buy better players to compete for titles.
Cryptocurrency’s Impact on Sport
The national women’s soccer league has suffered years of neglect, notably with the male’s sport dominating. Many companies looking for sponsorship deals have looked at the men’s teams to capture the significant crowds to push their products and services. While the cryptocurrency brokerage sector has not shied away from the men’s teams due to their lucrative appeal to people globally, Voyager Digital has struck a deal with the National Women’s Soccer League (NWSL).
The multi-million deal is a game-changer set to encourage more women in sports. Voyager has promised every female player a crypto wallet complete with crypto coins.
The offer, set to focus on all eligible players in the league, will help the girls learn how to use digital assets, which is a first.
The LA arena is a beneficiary of crypto sponsorship. Recently, it received and signed an offer to sell the naming rights to a crypto company. The soon-to-be former home to the Clippers will go by the name Crypto.com, an imposing name that will sell crypto assets to the masses. The impressive deal spanning over $700 million will help grow sports, while at the same time putting cryptocurrencies on the map as legit assets that anyone can own.
Deals of such magnitude will continue to emerge, especially in Europe, where crypto companies are making inroads. When that happens, cryptocurrencies will play a significant role in the future of sports, with speculations rife that the world cup will collaborate with some cryptocurrency firms.
The role of cryptocurrency in sports is one of a symbiotic relationship, where the sports club and the crypto company benefit. Developed markets in Northern America and Europe have witnessed first-hand the push by cryptocurrency to enter elite sports. The entry has witnessed staggering money exchanging hands for the benefit of sports clubs. Many clubs, including the women’s team, now have a solid basis for growth as long as crypto-assets exist.